|
|Homework: |Case Write-Up: Galanz |
STUDENT DECLARATION
I declare that this assignment is my own work, which all sources of reference are acknowledged in full and it has not been submitted for any other course.
Signature:…………………… Date:…………
Case Write-Up: Galanz
Case Briefing
This case shares with us about the story of Galanz Enterprises Group Co. Ltd. (Galanz) had transformed itself from a manufacturer of down feather products into a world class manufacturer of microwave ovens producing more than 50 per cent of the global output in 2007. This case describes the competitive and operational strategies that Galanz used to achieve such a meteoric growth. The company started out with a clear competitive strategy based on cost leadership. It designed and implemented operations system to help achieve lower cost through economy of scale, the transfer of production capacity from developed countries and full utilization of the available production capacity.
Case Analysis & Problem solving
1. What were the order winner/order qualifier for Galanz in the microwave oven business during the early stage of its development? When Galanz started its business, the microwave oven business in China was in its infancy and it was less risk to invest in the technology associated with microwave ovens because this technology had been mature and stable for a long time. At the early stage, Galanz did not have any competitive edge in production technology but only an abundant supply of cheap labor and land. Thus the only way to compete the market is to offering a low price. From 1996 to 2002, Galanz adopted a low-price strategy by repeatedly implementing cycles of price cutting and production capacity expansion.
2. Rank the